Tian An Australia Posts $23.4m Profit, Advances Key Property Projects, Secures $230m Interest-Free Loan

Profit Jump Driven by Property Sales and Loan Restructuring

Tian An Australia Limited (ASX:TIA) posted a remarkable turnaround in its financial results for the year ended 31 December 2025, reporting a statutory profit after tax of $23.4 million, a substantial increase from just $0.7 million the previous year. This jump was fuelled primarily by $84 million in revenue from property settlements, notably from the completion of The Henley, Enfield project, and a $20.4 million gain recognised from the modification of its major shareholder loan to an interest-free facility.

The company’s underlying profit, which excludes non-cash and non-recurring items, also swung from a loss of $4.6 million in 2024 to a positive $10.6 million in 2025, reflecting improved operational performance. The loan facility with Oasis Star Limited, which owns 76.7% of Tian An Australia and is ultimately controlled by Tian An China Investments, was increased to $230 million and extended to December 2027, with the interest-free terms effective from May 2024.

These financial results follow the company’s earlier half-year update in August 2025, which showed a $12 million profit and progress on key residential projects, setting the stage for the full-year performance and strategic advances.

Advancing Residential Developments Across Australia

Tian An Australia’s property development pipeline made significant strides during the year. The Henley, Enfield project reached practical completion in May 2025, with settlements commencing in July and over 80% of townhouses sold or exchanged by year-end. The company is now focused on selling the remaining 13 units.

At Auburn Square in NSW, Stage 1 is nearly fully sold, with remaining unsold apartments leased out. Stage 2, consisting of 249 units, is under construction following the appointment of Binah as main contractor and bulk excavation underway. Coles Supermarkets has secured a long-term lease for the retail space in this stage, with completion expected by mid-2028.

Meanwhile, the Hammond Greens project in Chatswood received state significant development approval in October 2025, allowing for an increased apartment count and additional affordable housing. Demolition of existing structures is complete, and construction tenders are underway, with building expected to start in the first half of 2026. The adjacent Hammond Place site was also acquired, with a development application lodged and approval targeted by mid-2026.

In Western Australia, Tian An submitted an amended Local Structure Plan for its Point Grey project to the Western Australian Planning Commission, with the statutory consideration period extended to April 2026 to resolve outstanding technical matters.

Strong Balance Sheet and Operational Focus Amid Market Challenges

The Group’s net assets increased to $93.8 million at year-end, up from $68 million in 2024, supported by improved earnings and asset revaluations. Cash reserves also rose to $6.9 million. The company’s balance sheet gearing ratio improved to 3% from 16% the prior year, reflecting the impact of the interest-free loan facility and prudent capital management.

Management emphasised cost control and operational efficiency, while actively assessing new investment opportunities aligned with their criteria. The company remains mindful of inflationary pressures, rising construction costs, and weather-related delays that have impacted project timelines and profit recognition.

Government incentives aimed at first home buyers, such as the 5% deposit scheme, are expected to support housing demand, which Tian An aims to capitalise on through its urban, well-located developments close to infrastructure and transport links. The inclusion of affordable housing in projects is also a strategic priority to address declining housing affordability.

The Board consists of three non-executive directors, led by Chairman Peter Curry, who brings over 45 years of experience across property and financial services sectors. The company appointed Robert Lees as Company Secretary in January 2025, succeeding Hai-Young Lu.

Audit Highlights and Governance

BDO Audit Pty Ltd issued an unqualified audit opinion, highlighting key audit matters including the valuation of financial assets related to Auburn Square and Chatswood projects, and the assessment of inventory net realisable values, particularly for the Point Grey and Enfield developments. The audit involved detailed review of discounted cash flow models and external valuations, reflecting the significant judgement involved in these estimates.

The company did not declare any dividends for the year, reflecting a focus on reinvestment and balance sheet strengthening. The remuneration report disclosed no bonuses paid in 2025, with fixed and variable pay aligned to performance and shareholder interests.

This report follows Tian An Australia’s earlier surge to $23.4M profit announcement, underscoring the company’s improved financial footing and project momentum.